Sunday, February 15, 2015

Iran, Iraq Follow Saudis in Fight for Asian Oil Market

Iran and Iraq cut prices for March crude oil deliveries to Asia to the lowest in more than a decade following Saudi Arabia’s move to reduce prices to the lowest in 14 years. Iraq’s Basrah Light will sell $4.10 a barrel below the benchmark used for Persian Gulf crude deliveries to Asia, the lowest since 2003. Iran’s NIOC lowered its official selling price for March to a discount of $2.10 a barrel, the lowest since 2000. (Washington Post/Gulf News, 15 February)

The price war signals the battle for a share of Asian markets, OPEC’s largest, for the Gulf producers.

“This is an effort by some producers to protect market share,” said Sarah Emerson, managing principal of U.S.-based ESAI Energy “It’s really straightforward; cutting prices is how you keep your foot in the door.” (Washington Post, 15 February)

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